ACCA Applied Skills · Financial Management · The nature and role of financial markets and institutions
Which of the following is an example of a non-bank financial intermediary?
A pension fund is a non-bank financial intermediary because it collects funds from many savers and invests them in a diversified portfolio. A stock exchange is a market, a registrar is an administrator, and a central bank is a monetary authority.
- AA stock exchange operating a trading platform
- BA pension fund collecting contributions and investing in a diversified portfolio of securitiesCorrect
- CA company's registrar maintaining the share register
- DA central bank setting the official interest rate
Explanation
A pension fund takes funds from savers and invests them in assets in its own right, so it is a non-bank intermediary, like insurance companies and unit trusts. A stock exchange is a market, a registrar is an administrative service provider, and a central bank is a monetary authority.
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